Problem 3: Gulf Controls, Inc., has a net profit margin of 10 percent and earnings after taxes of $600,000. Its current balance sheet follows: Current assets Fixed assets Total assets $1,800,000 2,200,000 $4,000,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and stockholders' equity $ 600,000 1,000,000 500,000 1,900,000 $4,000,000 a) Calculate Gulf's return on stockholders' equity. b) The industry average ratios are as follows: 6% Net profit margin Total asset turnover 2.5 times Equity multiplier 1.4 times Compare Gulf Controls with the average firm in the industry. What is the source of the major differences between the Gulf and the industry average ratios